19th Dec 2019 12:22
(Alliance News) - Venture Life Group PLC said Thursday it expects to finish the year with revenues and profits ahead of last year, and announced an acquisition of Netherlands-based PharmaSource BV.
Venture Life's shares were up 6.2% in London at 31.00 pence each on Thursday.
The company, which develops, manufactures and commercializes produces for the self-care market, said that it expects its revenues for 2019 to be at least GBP20 million. Revenue for 2018 was GBP18.8 million.
Adjusted earnings before interest, tax, depreciation and amortisation is expected to be at least GBP3.2 million.
Venture Life said its distribution partners in China experienced "some difficulties", which impacted sales in the first half of 2019.
"Whilst the causes of this have been rectified, it has not been possible to catch up on orders fully from those partners in the second half of 2019, with a consequent knock-on effect to our expected full year performance," the company said.
However, the company expects orders in China to grow in 2020, and said it already has an overall order book in hand for the first quarter of 2020 that is more than EUR1.0 million ahead of the same time last year.
Jerry Randall, chief executive officer, said: "We expect to finish the year with revenues and profits ahead of 2018. Despite some one-off costs in the first half, we have been pleased with the performance of the wider group, which has delivered good growth against a complex macro-economic backdrop."
Venture Life also said that it has agreed to acquire the Netherlands-based development and distribution business PharmaSource BV for an initial consideration of EUR5.23 million, and deferred contingent consideration of up to EUR1.27 million.
These payments will be funded entirely from its existing cash resources, the company said, and the acquisition is expected to be immediately earnings accretive.
The company said PharmaSource's revenue for 2019 is expected to be in excess of EUR2.5 million, with pretax profit in excess of EUR900,000.
By Loreta Juodagalvyte; [email protected]
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